Electric vehicle (EV) manufacturer Lucid Group (LCID 7.37%) has released a string of good news so far in July. But the EV start-up's stock has been tanking this week. As of late trading Thursday, Lucid shares were lower by 16.7% for the week, according to data provided by S&P Global Market Intelligence.
But this week's drop should be put in the context of a larger move. Even with the stock's pullback, it has soared by more than 35% over the last month. Some of this week's correction is likely due to profit taking after that torrid four-week run. But some also has to do with the business and larger EV picture.
NASDAQ: LCID
Key Data Points
Lucid had a record quarter
Lucid's still in start-up mode, so its report of record second-quarter deliveries needs to be taken in the right frame of reference. It sold almost 2,400 luxury EVs in the period, but investors will have to wait until it provides full quarterly results on Aug. 5 to see the full story. That story is likely to continue to show heavy losses.
But the company still considers itself a leader in EV technology. Just this week, Lucid revealed its 2025 Lucid Air sedan, with a record 146 miles per gallon equivalent (MPGe) EPA rating. Its Air Pure model is estimated to get a range of 420 miles from just an 84 kilowatt-hour (kWh) battery pack. The Air Pure is Lucid's lowest-cost vehicle, with a starting price of about $70,000.
The company is hoping to optimize battery technology
It's that efficient battery technology that minimizes large and costly battery packs that Lucid hopes to utilize to offer more moderately priced EVs in the future. But Lucid still has to make it through the next couple of years to have any hope of becoming a maker of more mainstream EVs.
While the company has a major financial backer in the Saudi Arabian government, investors would much rather see a business that can stand on its own. Lucid is still several years away from that possibility, leading investors to take profits this week.
